How do I report a 721 transaction in turbo tax?

[kmenace450]

I asked a CPA friend the same question and have not heard back yet.  I have not found any instructions yet that say you need to attach a statement. did you find any? 

[Mike9241]

here is code section 721

(a)General rule
No gain or loss shall be recognized to a partnership or to any of its partners in the case of a contribution of property to the partnership in exchange for an interest in the partnership.

(b)Special rule
Subsection (a) shall not apply to gain realized on a transfer of property to a partnership which would be treated as an investment company (within the meaning of section 351) if the partnership were incorporated.

(c)Regulations relating to certain transfers to partnerships
The Secretary may provide by regulations that subsection (a) shall not apply to gain realized on the transfer of property to a partnership if such gain, when recognized, will be includible in the gross income of a person other than a United States person.

so unless 721(c) applies there is no reporting requirement under 721 

if it does here are the regs

https://www.law.cornell.edu/cfr/text/26/1.721(c)-3 

https://www.law.cornell.edu/cfr/text/26/1.721(c)-6  - procedural and reporting requirements. 

[kmenace450]

Well, those ae very difficult to read, however it appears a brief reading not reporting is required unless you are foreign.

I don't know if it's better to attach a statement or just not do anything. 

I will be reporting income from the DST that was transferred into the Partnership, and the partnership sent out K-1's which had the adjusted basis figures I gave them earlier.  

I did ask a more experienced CPA and will see what she says. 

[Mike9241]

when a supporting statement is required either it will either be described in the code section with what it must contain and other details as needed or make reference to the regulations that will describe what must be done.

section 721(c) only comes into play if upon disposition of the contributed property gain will be allocated to a non-US person. 

if 721(c) does into play the reg 1.721(c)-6 describes what is required from the parties involved. 

it certainly is not wrong to include a statement with your return 

[kmenace450]

Thanks for the good work on the links and reporting requirements for the 721 exchange.  

[kmbayarea]

I am dealing with the exact same issue. My current DST sponsor has offered to exchange my beneficial interest in the DST for OP units under UPREIT IRC 721.  I would appreciate any further information and guidance you're able to share as to how you handled issue on TurboTax.